Bank Indonesia: Total Money Supply In April 2021 Reaches IDR 6.957.3 Trillion

Illustration. (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) recorded that the amount of money in circulation in a broad sense (M2) in April 2021 reached IDR 6.957.3 trillion or grew 11.5 percent compared to the same period last year.

"Economic liquidity or M2 will grow in April 2021 according to seasonal patterns in the month of Ramadan and ahead of Eid Al-Fitr", said Head of the BI Communication Department Erwin Haryono in Jakarta, quoted from Antara, Thursday, May 27.

He explained that the increase that grew by 6.9 percent compared to the March period occurred in all components, namely the narrow money supply (M1), quasi money, and securities other than shares.

Erwin explained that M1 growth in April 2021 was recorded at 17.4 percent (yoy), or higher than the previous month's growth of 10.8 percent (yoy).

Meanwhile, he added that the growth of quasi money also increased, from 5.9 percent (yoy) in the previous month to 9.7 percent (yoy) in April 2021.

Based on the influencing factors, the acceleration in M2 in April 2021 was due to an increase in net foreign assets, an increase in net receivables to the central government, and an improvement in lending.

"The growth of net foreign assets reached 10.7 percent (yoy), or an increase compared to the growth in March 2021 of 7.9 percent (yoy)", said Erwin.

Likewise, he said that the growth in net claims to the central government was recorded at 45 percent (yoy), or higher than the previous month's achievement of 42 percent (yoy).

In addition, Erwin confirmed that the contraction in credit growth has begun to improve, or recorded at minus 2.4 percent (yoy) in April 2021, not as deep as minus 3.7 percent (yoy) in March 2021.